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Romeyn, and petitioner at the Long Wharf closing. Petitioner
requested that a Jacuzzi be installed in his home along with
other alterations, and that Landing send some of its construction
workers to do the work. Landing made $6,087 in payments to fund
the renovations. Petitioner admitted that he never expected that
he would have to pay for the repairs. Accordingly, we find that
petitioner should include the amount Landing paid for the
renovations on his home in his 1982 gross income.
2. Fraud Addition Under Section 6653(b)
Respondent determined that petitioner was liable for
additions to tax for fraud in each year in issue. Respondent
must prove her determinations of fraud by clear and convincing
evidence. Sec. 7454(a); Rule 142(b); Rowlee v. Commissioner,
80 T.C. 1111, 1123 (1983). Fraud requires a showing that the
taxpayer intended to evade a tax known or believed to be owing.
Stoltzfus v. United States, 398 F.2d 1002, 1004 (3d Cir. 1968).
As discussed above, respondent must prove the amount of the
underpayment that is attributable to fraud for purposes of
section 6653(b)(2). See supra note 1.
In Fitzpatrick v. Commissioner, supra, the Court decided
that petitioner's conviction under section 7201 collaterally
estops him from denying that there is an underpayment of his
income tax, and that some part of the underpayment is due to
fraud for purposes of section 6653(b), for each of the taxable
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